Audit: DOH sitting on $1M in organ-donation license funds

The state Department of Health has never used any of the funds generated by distinctive license plates and a drivers license application check-off box to support the state’s organ donation campaign, according to an audit from the office of State Comptroller Tom DiNapoli.

As of December, the “Life Pass It On” trust fund had a balance of more than $1 million the audit found. It has never been tapped by DOH in its first decade.

That finding was part of a broader audit on DOH’s management of the money collected by similar programs intended to raise funds to battle maladies such as breast cancer, prostate cancer and Alzheimer’s disease. The audit found that DOH has, however, spent substantial percentages of the sums raised to fight diabetes and multiple sclerosis.

“New Yorkers who tried to help others did not expect their money to sit unused in a bank account,” said DiNapoli in a statement. “New York ranks among the lowest nationally in registering organ and tissue donors, yet we’re sitting on $1 million that could make a real difference in the lives of New Yorkers needing an organ transplant. Too many times we’ve found that state has failed to spend the money New Yorkers have given for worthy or lifesaving causes.”

In its response, DOH said its use (or non-use) of the funds doesn’t violate statute, and rebukes OSC for suggesting that it should work to promote the various funds: “Use of these funds to ‘promote the distinctive license plate of each fund’ would detract from their intended important use, which is to promote awareness and research. Further, it is not known if promotional activities would generate additional revenue, nor would it be appropriate to use donated funds for such a purpose.”

In its footnotes to DOH’s response, the Comptroller’s office — which has issued several scathing audits on the Cuomo’s administration’s spending on promotional programs for tourism, the START-UP NY program and more — says that “it is somewhat ironic that officials question the use of promotional activities to generate program interest and revenues given the State’s extensive use of media to promote a range of perceptions and initiatives.”

This is not the first time an OSC audit has criticized the state for failing to utilize funds raised by a state check-off donation program.

In 2014, DiNapoli’s auditors said more than $14 million accumulated in six state income tax check-off funds, with nearly 90 percent of that for health-related causes. In November 2015, Gov. Andrew Cuomo signed legislation — submitted by the Comptroller — to speed up the use of such funds.

More from OSC’s release:

Most recently, DiNapoli’s auditors examined DOH management of special revenue funds from April 1, 2013 through December 31, 2015. In addition to the Life Pass it On Trust Fund, auditors reviewed the Autism Awareness Fund, Drive Out Diabetes Fund and the Multiple Sclerosis Fund.

Auditors revealed DOH has received $108,225 for the Autism Awareness Fund since 2005 and disbursed a total of $37,940. The Drive Out Diabetes Fund has received $89,026 since 2003 and DOH has spent $64,293. Meanwhile, DOH collected $35,406 for the Multiple Sclerosis Fund since 2004 and spent $31,000.

Although auditors discovered DOH used monies timely and as intended for two of the funds during the audit period (Drive Out Diabetes and Multiple Sclerosis), department officials have generally taken a passive approach to managing and utilizing special revenue funds, lacking any specific plans and policies for fund management and making little effort to promote the funds or raise awareness of their existence.

DOH has also failed to report to the public on its use of the funds; adequately promote the funds to raise awareness and increase contributions; or adequately communicate with the state Department of Motor Vehicles (DMV) regarding possible collaboration of marketing efforts.

As a result, the audit shows that contributions to each of the campaigns has stagnated in recent years. Specifically:
· The Life Pass It On Trust Fund received contributions in the $4,000 to $7,000 range during its first five years. Contributions then jumped to more than $124,000 when the $1 license application check-off box was instituted in 2009. This trend continued over the next two years, reaching its peak at $208,000 in state fiscal year (SFY) 2011-12. However, contributions have declined over the last four fiscal years and totaled just over $106,000 in SFY 2015-16.
· The Autism Awareness Fund had six consecutive years of revenue ranging between $10,000 and $12,000. In SFY 2014-15, contributions totaled just under $10,000 and in SFY 2015-16, contributions are just over $6,000.
· The Drive Out Diabetes Fund had four consecutive years between $8,000 and $10,000 in revenue, but has not exceeded $8,000 for the last six fiscal years. SFY 2015-16 contributions were just over $3,000.
· The Multiple Sclerosis Fund had two consecutive years of more than $5,000, but has not exceeded $5,000 in contributions for the last six fiscal years. SFY 2015-16 contributions were just over $1,000.

DiNapoli recommends DOH establish and implement fund management controls to ensure that special revenue funds supported by voluntary fees and contributions are utilized timely and for their intended purposes. This should include:
· Written plans and policies geared toward the management of specific special revenue funds;
· Procedures to effectively promote the respective distinctive license plates of each fund, as well as the state’s ability to accept grants, gifts, and bequests for these funds;
· Public disclosure of how funds are used;
· Regular monitoring of fund activity; and
· Communicating with DMV regarding revenue deposits and possible collaboration of marketing/promotional efforts.